Why Doing Good Is Actually Good for Business

Nov 18, 2015

This “Doing Good” Program shows that high integrity and strong corporate values drive terrific business outcomes.

There is a growing awareness that human capital and positive organizational dynamics are key to long-term business success. Happy employees drive harder than disgruntled ones and they proceed cautiously when trust is low and doubt is in the equation. For this reason, the clients that I work have found that staff engagement and employee satisfaction can only be built on a solid foundation based on impeccable values and high performance standards.

Knowing that great business solutions go with values, Arison Investments conducted a massive-scale implementation of its “Doing Good Model,” for 27,000 employees across more than 40 countries in its diversified portfolio of finance, real estate, infrastructure, renewable energy, water, and salt industries.

Chairman and CEO of Arison Investments, Efrat Peled, has this to say about the Doing Good Model program:

“Today, in order to manage and drive forward a flourishing business, you must place values and integrity at the core of the corporate DNA.”

“Business leaders that create the most impact empower champions on the ground, from mid-management top down and employees bottom-up. It’s all about connecting to meaning, rather than execution. For example, at Arison Investments employees on all levels voluntarily participate in cross-organizational forums that serve as incubators for values-based entrepreneurship.”

“Success should be driven by people identifying with the company’s backbone of values. This will give employees on all levels the opportunity and go-ahead to innovate, which is an intrinsic compensation built into doing something you are passionate about.”

“Ethical business conduct and peak performance go hand in hand. Economic stability can only be reached through investments in the business that bring positive impact on all levels of the organizations.”

“Committing to a long-term strategy inspires unexpected solutions that are unique and practical. Bank Hapoalim, Arison’s financial services group, focused its vision on the value of Financial Freedom, and leveraged its leadership to set into motion transformative processes in the entire market, including its Small Businesses Initiative that resulted in increased nation-wide growth for small and medium-sized businesses — which, in turn, drove growth opportunities for the business.”

Here are some of the early results from the effort:

At Bank Hapoaim, the share price appreciated +63% with a compounded annual growth rate of 13.5%. Further, it has been ranked #1 in peer group among the most actively traded stocks on Tel Aviv Stock Exchange

At Shikun & Binui, the share price appreciated +28% in the last 5 years, with a net profit of 8.5%, revenue growth of 6% and a cumulative cash dividend of $454 million.

As these examples show, business leaders that drive high values and integrity into their company culture will perform better than ones that choose not to. There is no magic here, though! Cultural transformation requires deliberate effort and constant nurturing. However, dividends on the investment can be worth the effort.